Regional Price Trend Get the latest insights on price movement and trend analysis of NPK in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
For the Second Quarter of 2022
Owing to the continuing geopolitical tensions and soaring crude oil prices, the prices of almost all the commodities are rising and inching closer to the 2008 crisis levels, affecting the global consumption patterns and economy. The prices of fertilizers have exploded since the start of the current year due to the surging feedstock prices.
Urea prices have outpaced their 2008 level, while potassium and phosphorus are moving closer to the 2008 levels. The cost of feedstock phosphorous reached a maximum of 38000 RMB/MT in the Chinese domestic market. The surging coal prices led to rationing of electricity usage in China, which caused many fertilizers production units to stop production, leading to tightening supplies.
Further, with China imposing a ban on exports of fertilizers, especially phosphates, till June 2022, citing domestic availability and food security, the prices of NPK-based fertilizers soared domestically and globally. The Indian government had to roll out subsidies worth USD 7.69 billion to protect the farmers from the soaring prices of NPK fertilizers.
Russia and Belarus are the major players in the fertilizer market. With the European embargo on Russia, a staggering energy crisis was unleased in the domestic market. The rising oil prices caused the prices of petrochemicals to inflate, thereby increasing the costs of inputs/primary feedstock.
As soon as the sanctions were announced, Russia imposed restrictions on the supply of N, P and K-based fertilizers, affecting 15% of the global fertilizer supply. Belarusian potash exports fulfil 90% of Europe's needs. With Lithuania halting the use of its railways to transport Belarusian potash to the Klaipeda port, the entire supply chain was affected; consequently, the prices soared in the European domestic market.
The US produces nitrogen and phosphates for its domestic consumption but imports potassium-based fertilizers. Owing to the surging prices of fertilizers, many producers have chosen to reduce the overall acreage planted, which will have a profound effect on the 2023 planting patterns, thereby inflating the prices of commodities in the domestic market.
For the First Quarter of 2022
Fertilizer companies passed on a portion of the increase to farmers as input costs had risen considerably. IFFCO, India's largest fertiliser company, increased the price of DAP from 1,200 INR/bag to about 1,350 INR/50 kg bag (a 12.5% rise), while the price of one variety of NPKS was raised to 1,400 INR/50 kg bag from 1,290 INR/bag (an increase of 8.5%). NPK prices for grade 1 and 2, which are other grades of NPK fertiliser, were a minimal 20 INR/bag to 1470 INR/bag.
For the Fourth Quarter of 2021
Due to robust upstream prices ZCE Urea futures, which grew by a substantial proportion, urea prices increased in the fourth quarter of 2021. Plant operating rates have increased, resulting in increasing demand from downstream agricultural as well as downstream Melamine manufacturers.
Increasing coal prices in South Asia prompted many provinces to ration electricity and fertiliser makers to reduce production, according to industry data. In December, the FOB Qingdao price rose to 19 USD/MT, while CFR JNPT Urea rates were quoted at 566.95 USD/MT. During December, the price of potassium chloride was roughly 605.2 USD/MT.
Overall, Asian ammonia market attitudes were positive, with strong demand in India to meet their demands during the rabi crop season, while the forecast for Chinese ammonia on the local spot market remained bullish, thanks to rising natural gas and coal prices. Furthermore, in the fourth quarter of 2021, the influence of Chinese authorities' dual-control energy consumption limits to reduce carbon emissions and limit power use prevailed. As a result, some ammonia facilities had to cut back on production, prompting China's government to ban downstream Urea shipments to international markets.
Due to a large increase in the price of raw materials, the price of urea surged in the fourth quarter of 2021 in the North American region. Prices for nitrogen fertiliser have hit unprecedented highs as a result of a global scarcity, prompting farmers in North America to postpone purchases. In December, US urea prices topped 728 USD/MT FOB Cornbelt for the first time. Increased feedstock Ammonia prices as a result of rising natural gas prices put pressure on local industries and downstream consumers.
Supply restrictions in the United States towards the end of the quarter also aided price hikes. Following an exponential rise in MOP prices in December in the United States, the price was reportedly hanging around 775 USD/MT.
The price of ammonia in the North American region climbed dramatically in the fourth quarter of 2021, owing to a considerable increase in the commodity's value as a result of a global nitrogen fertiliser shortage.
In December, the assessed value of ammonia FOB New Orleans (USA) pricing reached an all-time high of 1177 USD/MT. Ammonia supplies were sluggish in the quarter as a result of the reduced availability of hydrogen and nitrogen in the aftermath of Hurricane Ida.
In the fourth period of 2021, fertiliser prices in Europe significantly improved. Higher feedstock Ammonia prices, rising input costs as a result of the energy shortage, and rising Natural gas prices, a key component in fertiliser manufacture, have all driven Urea prices higher in European markets. Moreover, increased freight costs and a scarcity of shipping containers played havoc on Urea prices in the third quarter. Nitrogen fertilisers were in short supply and in high demand all across the world in Q4.
In Europe, the price of ammonia has been steadily rising, owing to a surge in raw material costs due to rising natural gas prices. Since the beginning of the year, the German market has had a bullish market feeling for ammonia, as demand from the nitrogen-based fertilisers industry has been strong and effective enough to maintain the overall price increase of ammonia. Ammonia prices in Germany were last assessed in December 2021 at 934 USD/MT CFR Hamburg. Inflationary freight expenses and a scarcity of shipping containers wreaked havoc on Ammonia prices this quarter.
For First, Second and Third Quarters of 2021
Prices of urea rose steadily across the Asian market, owing to increased demand from both the domestic and foreign fertiliser markets. Prices in China spiked in Q1 2021 as a result of a partial lockdown in response to an increase in daily COVID-19 cases. While this had little effect on urea production in the country, it did cause problems with road transit and exports.
Meanwhile, demand for urea in India improved from the previous quarter, and limited supply sustained its pricing. In addition, the Indian government authorised a USD 13.44 million grant to support BVFCL (Brahmaputra Valley Fertilizers Corporation Limited) plant operations, which have a 390,000 MT/year urea production capacity.
As a result, potassium chloride prices in the Indian market soared early in Q2, with Ex-Depot Ahmedabad negotiations concluding at 280 USD/MT in April, representing massive increases over Q1 levels. Ammonia pricing recovered towards the end of Q3, with FOB Qingdao prices settling at 702 USD/MT during the week ending September 24th. Prices in India increased from 664 USD/MT to 798 USD/MT in Q3 2021.
Although demand for urea in the North American region rose throughout the quarter, prices remained high due to a scarcity of feedstock chemicals. As a result of the winter storm, several feedstock ammonia facilities and other industrial units around the Gulf Coast were shut down.
In March, ex-factory urea prices at port Neal were around 415 USD/MT, an increase of 20 USD/MT month over month. Following a protracted winter storm and trade interruptions, it was expected that prices would level off until the end of the quarter, when production across the US Gulf region returned to normal.
From July to September, the price of MOP in India increased by 92 percent, from 359 USD/MT to 466 USD/MT. Furthermore, the adoption of COVID limits in China's major ports aggravated the overall price situation in Asia.
Potassium chloride prices soared to 476 USD/MT in Q2 due to strong demand and limited supply in the North American region. However, the sales were hampered by the rising of the Canadian dollar.
In March, the FOB price of Potassium chloride US MOP was estimated to be around 310-320 USD/MT, up around 15-20 USD/MT from February levels. Prices of ammonia grew significantly in the third quarter of 2021 in the North American region, as demand for ammonia from the large downstream fertiliser business remained robust. Due to adverse weather conditions that interrupted production in Q1 2021, inventories for the commodity in the United States were lower than expected.
The price of ammonia was fixed at 605 USD/MT FOB New Orleans in the first week of August. Since mid-May, there have been no major planned or unplanned plant outages, indicating that supply fundamentals have remained strong throughout the quarter.
During the first quarter of 2021, the European market saw stable domestic and international demand for Urea. Lower feedstock, i.e. ammonia, output from the US market due to disrupted production and limited trading activity in the second half of the quarter sparked international demand, supporting price increases across the region.
Shipping container shortages and rising freight costs also had a substantial impact on Urea prices across various trading routes. Plant operations were reported to be sluggish throughout the quarter due to harsh weather conditions and limited crop output, keeping MOP supplies steady in Europe.
Potassium Chloride capacity additions of around 3.2 MTPA were expected to come onstream in the coming quarter, boosting buyer sentiments. Demand remained generally subdued as agricultural market offtakes fell owing to unseasonably cold weather. Due to increased demand, certain stocks were transferred to the United States.
In the third quarter of 2021, ammonia prices in Europe continued to grow sharply. Due to a continual reduction in domestic ammonia production in Europe, the price rose sharply by roughly 300 USD/MT since January 2021. In September, CFR Hamburg prices were 710 USD/MT in Germany.
For the Year 2020
Urea exports from China increased dramatically in the first quarter as the country attempted to generate cash by catering to regional demand in the face of low availability in the domestic market. With the start of the Rabi season in India, demand for urea increased dramatically. In October, a major fertiliser business in India purchased roughly 2.18 MMT of urea cargoes.
India imported urea from all major sources, including Indonesia and Vietnam, because Indian producers received higher netbacks than producers in the United States or Brazil. Malaysian and Indonesian producers were observed performing planned and unplanned maintenance. These occurrences, however, did not cause any substantial supply disruptions across the region.
Prices began to recoup their lost pace as demand fundamentals improved in the second half of the year, somewhat offsetting the quarter-on-quarter drop. In the first half of the year, disruptions in the logistics chain and personnel constraints hampered Indian DAP and NPK fertiliser output, resulting in lower ammonia feedstock requirements. On a CFR India basis, spot ammonia was trading around 280.5 USD/MT.
Due to a drop in demand at the end of the agricultural season in the United States, supply remained plentiful in Q4. As harvesting progressed, the overall rate of demand slowed, but urea prices remained favourable to farmers. Early and late winter meant that additional fertiliser of fields came to a halt, and there was little to no room for early contract buying.
In addition, barge traffic in New Orleans (Nola) remained steady, making the market less appealing for imports. Three other Trinidad producers temporarily shut down output in late September, including a 500,000 tpy export-oriented Trinidad Nitrogen Company Limited (Tringen) plant in Point Lisas.
Due to the unexpected drop in regional prices, Nutrien was the first to shut down portion of its output. While prices improved significantly in Southeast Asia, the Middle East, and Russia during the quarter, ammonia supplies in the Americas remained substantially discounted.
Spot prices were estimated to be between 170-180 USD/MT FOB US Gulf. Potash demand remained a key profit driver for many fertiliser companies in the United States, thanks to rising agricultural sales. MOP prices in the United States hovered above 140 USD/MT in the fourth quarter, indicating significant improvements.
Due to rising demand, Q1 deliveries were priced 40 USD/MT higher. Potash sales into the oil and gas markets were constrained, although many producers were able to manage their inventories by channelling them into the agricultural sector.
As huge volumes from several nations were rerouted to India during the Rabi season in India, the demand fundamentals for urea in Europe were also influenced. There were no shutdowns or force majeures since European producers continued to produce without interruption and were able to meet domestic demand.
The increase in Urea use in October did not meet market forecasts due to weak harvesting activity, market uncertainties, and financial concerns. In the first half of November, demand was sluggish, but it picked up towards the end. Despite the fact that Q4 was a poor period for the European fertiliser business, supply of potassium chloride remained consistent.
Some amounts were shipped to the western United States. Demand fell in Q3 due to a seasonal slump that affected market sentiments for the majority of the quarter. Market mood remained high due to active restocking by several US consumers. Players, on the other hand, predicted an improvement in the price trend in Q1, indicating greater pricing on spot purchases in January 2021.
Some Russian Ammonia tankers were booked for South Korea in the fourth quarter of 2020, as a more favourable choice than shipping a cheaper cargo from Trinidad. In July, Russia's total ammonia production reached a new high on a year-over-year basis, with FOB prices hovering at 180-190 USD/MT.
Procurement Resource provides latest prices of NPK. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
NPK fertiliser is one unique product which has got the most crucial nutrients that plants need at numerous phases of growth. This grade is suitable for all crops as it supports root development. It is composed of potash, nitrogen and phosphorous in a single product in good measure.
|Industrial Uses||Farming , Agriculture, Nursery, Gardens, Parks|
|Supplier Database||Eurochem Group, Agrium Inc., Yara International ASA, Acron Group, ICL (Israel Chemical Ltd.)|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
The production process of NPK includes acidifying phosphate rock along with nitric acid to prepare a mixture of phosphoric acid and calcium nitrate.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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